Russia to Implement the “First” Guarantee System for ICO Investments

While Russian legislators are breaking their heads about the regulation of cyber assets, mining and blockchain in the state, the financial sector on par with virtual money enthusiasts have decided to take the bull by the horns.

According to Russian media, next month there is going to be launched a guarantee system for ICOs in Russia.

The “First” Warranty System for ICOs

This year March, the first ever, as local media outlets emphasize, warranty system for ICO’s funding is expected to be implemented in Russia. The initiators and implementers of the idea are
Globex Bank,
an affiliate of the state-possessed
VEB
bank alongside with the Russian Association of Cryptocurrency and Blockchain (RACIB), as well as the
CrowdHub
platform.

In an interview with Russian media
Izvestia,
Globex’s leader Alexander Mineev, who takes care of e-commerce and advancement of distant banking services, confirmed that the novel system is going to be an element of an ICO-hub.

How Will it Work?

People, who would like to attract investments through
ICO,
will be able to benefit from this system. The ICO-hub will be able to accept both cyber money and public currencies as payment methods. Apparently, Globex will be working with fiat currencies, whereas CrowdHub will focus on receiving digital coins. Two of them will be dealing with the escrow account.

This phenomenon is a compelling financial tool or an asset controlled by a third party on behalf of two other sides that are in the process of terminating financial operation.

As media reported, such an approach will help to diminish jeopardies of deal breakers or scam when raising funds for ICOs. This way, both parties will receive warranties.

However, not everybody agrees with it. For instance, the leader of the Russian tax company TSK opposed the idea, saying that the legal protection of investors has not been made sound yet.